Rushing Team

Buying Your First Home? Follow These 10 Tips for Success!

Tuesday, October 29th, 2013

Are you preparing to buy your first home? Well, congratulations! This is quite an exciting time in your life. You’re bound to love being a home owner and will probably enjoy all of the freedom that comes with it, but you will definitely need to do your homework before you begin looking for a home.

Take a moment to envision the home of your dreams. What does it look like? Where is it located? Do you see yourself living near a city, by the mountains, or by the ocean? What is your dream community like? Do you envision your home to be on the outskirts of a thriving city or tucked away cozily in the country? These are all serious questions that you will need to consider and answer before you go house hunting.

Once you answer those questions, where do you really begin on your journey to purchase your first home? Read the following 10 tips to find out!

Step 1: Know Your Credit Score – Before you do anything else, you need to check your credit score because it will be an important factor in getting your mortgage qualifications assessed. The lender you go through will connect your credit score to the interest rate you will have to pay for your new home. The ideal score you will need to shoot for is between 720 and 800 so you can pay the lowest mortgage rates. If your score happens to be at 620 or below, you might not even qualify for mortgage until your score is improved.

Step 2: Set Your Budget – A budget is nothing to estimate when it comes to buying a house. Figure out a budget for yourself with your income and spending to see how much you can afford before you go house hunting. Remember, you don’t want to fall in love with a house that’s way outside of your budget!

Step 3: Stop Spending and Start Saving – Whenever you have your budget set up and ready to go, you need to figure out how much your potential mortgage payments will be and begin saving the difference between that payment and your current rent each month. This will not only help you save the money you will need, but it will also get you more acclimated to spending the higher amounts in the future.

Step 4: Find a Reputable Lender – It’s not time to look for houses just yet! You will need to find a good lender first in order to get pre-qualified for a mortgage loan. Be sure to ask your lender about all the different loan options out there and figure out about how much money you will need for a down payment and for closing costs.

Step 5: Find a Trustworthy Realtor – Nothing is more important when buying your first home (except for maybe setting your budget) than finding a realtor you know and can trust. Your realtor should be knowledgeable, experienced, and familiar with the area you want to move to. This person also needs to be reliable during times of negotiations so your interests will be represented properly. That’s what we at Prudential Select Properties do! Find out more here.

Step 6: Figure Out Your Top Priorities – Now that you’re ready to go looking at houses, it’s time to nail down your top priorities. Like any other potential house owner, you probably have a lot of things on your first house wish list that you would like to see come true. Sometimes, however, you won’t be able to find or afford all of the qualities and things that you want with your first home, so you should be prepared to compromise. Find out which qualities and things are on your must-have list first. Is it more important to live in a particular type of home or a certain part of town? You will need to know before you can peg down the house you want.

Step 7: Pick a Neighborhood or Town You Like – Take care to remember that some neighborhoods hold onto their value more than others if the housing market is rocky. You should work with your realtor to help you find a neighborhood that meets your needs and keeps you happy and safe. Remember, no matter what, safety is the most important factor when it comes to purchasing a home.

Step 8: Make an Offer – If you have found a home that you really like and hits your top priorities, then it’s time for you to make an offer! Don’t place your offer at too low of an amount. Many sellers are quite willing to negotiate an amount, but there are many others that won’t bend on their prices. Instead, have your realtor walk you through the process and come up with a good offer. That way, you can be assured that you will receive fair treatment.

Step 9: Get an Inspection – Getting your first home inspected before you close the deal is incredibly important. You should never, ever purchase a home without having an inspection. A professional home inspector will identify the flaws and weak parts in the home and can tell you which systems and appliances will need to be replaced and when.

Step 10: Seal the Deal – Congratulations! You are ready to take the final step and sign the contract! After the contract is signed, you should stay in close contact with your lender and realtor to ensure that your financing is being taken care of. A good realtor will keep a checklist handy to make sure that everything is completed in time for the settlement.

Are you ready to buy your first home? Need a reliable, trustworthy realtor to help you find the home of your dreams? Call us at Prudential Select Properties today at (314) 835-6000 or visit us online at www.DiscoverStL.com to see what we can do for you.